Industry's Economic Council Meefis

fT has been the practice of the president ! of the National Lurnber Manufacturers Association to appoint an Economic Council of the Lumber Industry to meet each year. This Council is made up of corporation executives from all facets of the lumber industry representing large and small companies producing and selling lumber in all parts of the United States. Membership is rotated each year.

The Sixth Economic Council of the Lumber Industry met at the Dorado Beach Hotel in Puerto Rico January 18 thru 21. 'Mark Townsend, president of the NLMA, appointed Benton Cancell, president of Pot' Iatch Forests, as chairman.

It was learned just prior to the opening that the Southern Pine Association had formally withdrawn membership in tJre NLMA. Individual mernbers of the SPA at the meeting stated that this action was taken on advice of counsel which presented the opinion to SPA that the activities of NLMA in promulgating lumber standards were in violation of existing consent de' crees. Mr. Thurman Arnold, who was assistant attorney general at the time the cons€nt decree was issued, has given his professional opinion that the NLMA is not in violation of the consent decree.

It was the opinion of some members of the Economic Council that too much emphasis on unity at any cost may be the source of our disunity. Already, too much time has been spent trying to get one hundred per cent agreement when common sense dictates that it is next to impossible. The industry consists of individuals with old traditions, varying goals and difierent temperaments. Perhaps when the industry is in majority agreement, it must move to accomplish its major and broadest goals through the best leadership available. The dissenters could then see the wisdom of the program and join to further strengthen the movement. The leaders in this c€Ne are not only the 'obigs," but are representatives from the large, medium and small companies in all segments of the forest products industry who recognize that united action in the industry is imperative to reach the goal of increasing our markets and protecting present markets from substitute products.

While there was considerable discussion at this meeting on the subjects of industry unity and grade marking, the following su,bjecrc were also hit head-on:

(l) Can the industry organize itself for better government relations at all levels? Should the industry develop a positive approach to government relations versus counter-punching? What can the industry do to promote better public understanding?

(2) Does the council consider that a promotable product must meet public requirements and performance standards to safeguard the consumer?

(3) Are those financial resources of the forest products industry which are presently availa,ble to industry organizations, adequate to fulfill the obligations imposed by government and marketing pressures?

It was suggested that the increasing size of government and. its encroachment on business is inevitable. However, business must rcgain its self-confidence in the role it plays in the economy. Today, business is still equally significant with government,

In line with CLM's policy, thi"s thoughtlul article by C. M. "Cris" Snauely, president tt Tlw Cermain Co., Inc., uenerable Pittsburgh wholewJe firm, is presented with the hope that lumber industry cornmu;nica,timns may benefit.-Edinr.

Snovely

and we should adopt a positive attitude in our relationship with the government. Positive programming with the governm€nt would be far more practical for our industry than counterpunching and constantly fighting the increasing size of government,

Grade marking of lumber and plywood, and the policing of these grades, is one of the most important subjects facing our industry. Unless our industry moves toward one hundred percent grade marking, the government will do it for us. Apparently the United States Departrnent of Commerce is already doing investigative work preparatory to securing legislation to regulate grade, sizes and moisture content of lumber products.

It was pointed out that the NationalAmerican Wholesale Lumber Association and the National Lumber and Building Material Dealers Association have for some years promoted the concept of grade marking all lumber.

It ,became apparent as intimate discus. sion ensued on the subject of grade marking and consumer protection that grading irregularities are not at all limited to Long Island or southern California. nor are thev limited to the distribution or ietail levei. Evidently there is some soul-searching and some housecleaning to be done at the manufacturing level.

It is surprising, though, when we think of it, that the reputable manufacturers of lumber are willing to put their name on the lumber they produce and not put a grade mark on it.

In the area of grading and policing of grades, considerable discussion was heard about the National Hardwood Lumber Association and its modus operandi. This association was founded years ago as a grading agency to supervise all grades of hardwoods produced in the United States and Canada. Prior to the formation of the NHLA, each regional wrote its own rules and supervised the grading of its lumber.

Globe Specializes

The NHLA was formed to bring under one agency the grade supervision of the pJreat number and variety of hardwood species produced on this continent. NHLA has performed very successfully and grading certificates issued by its inspectors are well accepted by all manufacturers, distributors and users of hardwood. Membership in the NHLA is made up of manufacturers. distributors and users. The association also operates a very successful grading school at Memphis. This agency could serve as an excellent ,example of what might be done. in the softwood industry on this continent. Perhaps the NHLA could be extended to include softwoods, or a national softwood grading agency could be organized.

Marketing

Marketing and merchandising problems received a fair amount of consideration at the meeting. It is generally recognized that the Lumber Industry Merchandising Council, in its meeting held so far, has provoked constructive discussion of many marketing opportunities. It has surely opened the lines of communication between manufacturer, wholesaler and dealer, and has made the manufacturer aware of the fact that many of his problems could be solved concurrently with the solving of related problems at the distribution level. But for some reason the NLMA has three times asked for postponement of the scheduled second 1964 meeting.

It has been my privilege to attend a number of industry meetings in the past few years. It has been gratifying and educational to sit down and engage in frank and open discussions with knowledgeable men representing all segments of the forest products industry. In spite of all the meetings, it would appear that our industry today is torn further apart than at any time in its history. My observation, however, is that when you look behind the scenes, you find far more unity of thinking than would appear on the surface.

The industry and the association leaders are really doing a respectable job for their companies and for their industry. but they are doing a poor job of communicating and embracing the many people in our industry who do not have the opportunity to participate in the many meetings.

Since these people are not properly consulted or informed, and consequently do not und,erstand the objectives and the goals of the leaders, the natural thing to do is to fight them.

One might say that our salesmanship and merchandising techniques in the area of human relations are just as lacking as they are at the market level. Our industry has some of the finest people in the country, and we have without a doubt the finest product in the world. It really hurts to know that total lumber shipments in 1975 will he the same as they were in 1900.